Expert: Lynn Houston - 8/11/2008

Question
A car was bought for $16000. Each year the car depreciates by 15% of its value at the beginning of the year.
Find the value of the car after 1,2,3 years. show all working

Answer
Each year the car depreciates by 15% of its value at the beginning of the year. Find the value of the car after 1,2,3 years. show all working

after 1 yr/beginning of yr 2 value =  16000- .15(16000) = $13600
after 2 yrs/beginning of yr 3 value = 13600- .15(13600) = $11560
after 3 yrs/beginning of yr 4 value = 11560- .15(11560) = $ 9826


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